As a first-time buyer it’s easy to make mistakes early on in the home buying process it’s exciting buying your first home but don’t let it get the better of you. In this article, we will discuss the seven biggest first-time buyer mistakes and how to avoid them, let’s get to it. We want to provide the best tools and tips to first-time buyers.
So the first and most common mistake is viewing properties before you find out your mortgage options, you go online check out the properties and view them only to find out you cannot afford the property. The mortgage amount applicable to you is not high enough.
Mistake number two, making an offer before you have an agreement in principle the seller or estate agent will want to know you have been checked out and that you are suitable mortgage material if you make an offer and someone else does and they have an agreement in principle, they’re going to be in a stronger position than you and that is a matter of fact.
Mistake number three which is becoming more common is classing yourself as a first-time buyer when you own properties in other countries that means you are liable for the highest stamp duty tax. Remember to factor in your stamp duty, if you own properties anywhere in the world you’re not a first-time buyer.
Mistake number four not checking all the credit file providers. Did you know there are three credit file providers? Experian Equifax and Transunion and the mortgage lenders may use one or the other. If you only get a credit report from Experian or Equifax you’re only gonna see what’s on that particular report.
The lender may use a different provider which may have different data and therefore the lender you thought would be okay isn’t because they’ve picked up something else you’re not able to see. Obtaining a credit report from Checkmyfile has all three reports on one file it’s by far the best credit report facility out there because it has all the data and is what all the mortgage lenders may use to make a decision on your mortgage.
Mistake number five purchasing a property after just one viewing when you go and look at a property always go in for a second viewing maybe even a third viewing and ideally take someone with you who’s experienced in the property field. A property will always look a little bit different to you the second and third time you view it.
Mistake number six is not leaving any budget for insurances when you obtain a mortgage if you purchase a house by law you will need buildings insurance On top of this when you’re purchasing a property, very expensive asset, you’re going to want to protect yourself for a loss of income illness or injury the last thing you want is to lose your home because you can’t make the payments factored in a budget to go towards your mortgage protection and house insurance from the very start.
Number seven is incorrect documentation. It may be an out of date passport, it may be a driving license with the wrong address, you may have utility bills payslips or bank statements with the wrong spelling of your name. All these abnormalities will slow your mortgage application down. The lender will make you correct the mistakes which you do not want during a mortgage application because it could lead to you losing the property any good mortgage broker or lender will get all your documents checked out before they even supply you a mortgage quote make sure you are mortgage ready question of the day do you agree that preparation is the key to a successful mortgage outcome let me know in the comments please note that we are obliged to tell you that your home may be repossessed if you do not keep up repayments on your mortgage.
We hope that this helps you to avoid the main first time buyer mistakes that a lot of first-time buyers come across.
Source Link: https://www.youtube.com/watch?v=0rPQyM8Gbis